Positive results from DPJ stimulus initiatives are becoming apparent

The Japanese market has been a laggard in the broad equity market recovery that began in March last year.

Factors that weighed on the market in 2009 included doubts about the sustainability of domestic recovery, poor sentiment towards the financial sector and political concerns. However, there are several reasons for optimism about the market’s prospects and we believe Japan can catch up with global markets this year. Looking at the macro-economic picture, data releases continue to support our view the global economy is gradually bottoming out and beginning a mild recovery. Although the external side of the Japanese economy is outpacing the domestic, essentially we believe the recovery is on...